Shares of Divi’s Laboratories Ltd rallied almost 5% on 21 April after the company announced signing a supply agreement with a multinational pharmaceutical company. 

The long-term agreement states that the company will manufacture and supply advanced intermediates in accordance with the commercial conditions that the parties have agreed upon.

Divi’s Labs stated in an exchange filing that it anticipates significant revenue contributions from this long-term partnership. However, the corporation did not reveal the identity of the partner.

The filing added, “The company is planning for capacity addition at its manufacturing facilities with an estimated investment between Rs 650 crore to Rs 700 crore, to be funded from internal accruals.”

The company reported a consolidated net profit of Rs 589 crore in December 2024 (Q3 FY25), up 64% from Rs 358 crore in the previous fiscal quarter. The company’s revenue from operations increased 25% to Rs 2,319 crore from Rs 1,855 crore in the previous year. 

Divi’s Laboratories was founded in 1990 and supplies Big Pharma with custom manufacturing and generic APIs (active pharmaceutical ingredients). It is one of the world’s leading producers of APIs. It has two state-of-the-art manufacturing plants in Vizag and Hyderabad. 

The company is present in more than 100 countries and has a portfolio of about 160 medications spanning multiple therapeutic areas. The business has two subsidiaries: Divis Laboratories Europe AG in Switzerland and Divis Laboratories (USA) Inc. in the USA.

At 11:43 am, the shares of Divi’s Laboratories were trading 3.03% higher at Rs 5,811 on NSE. 

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